Greening China's supply chains: A coordinated policy approach

China's commitment to fighting air pollution has propelled the greening of supply chains to the forefront of its long-term strategy. This study proposes a coordinated policy approach to greening supply chains. It investigates how strategic interactions between the government, manufacturers, and retailers can be shaped by various policy mixes (involving subsidies, environmental tax, and carbon trading) to promote sustainable practices in supply chains. Employing a non-cooperative evolutionary game model, simulations reveal that retailers' active green promotion can facilitate bottom-up green technology innovation among manufacturers. While individual policies often yield limited or heterogeneous impacts, coordinated policies demonstrate much better potential for stimulating green innovation. However, achieving policy success is contingent on addressing critical vulnerabilities, including regulatory gaps, greenwashing, and illicit emissions activities. Ultimately, effective execution of green policies depends on not only robust design but also competence and integrity of the actors charged with implementation. The findings suggest that a combination of retailer engagement, policy complementarity, and dynamic policy adaptation is crucial for successful green transformation of supply chains.